Sumary of Can Facebook’s new payment method compete with Venmo and Zelle?:
- The rollout of Facebook’s QR code-based payment service turns its Messenger platform into an open payment network, but may struggle to pull users away from popular alternatives like Venmo and Zelle..
- Unlike previous iterations of Messenger payments, the new system does not require users to be connected on its social network..
- Instead, it creates a QR code or a payment link in the Messenger app and ties into Facebook Pay, which launched in 2019..
- Facebook initiates the payments immediately, but it could take up to five days for the funds to post to a bank account from a linked debit card or PayPal account..
- “I don’t know that this new Messenger payments capability will be a breakout service, but more likely it a means to facilitate, embed and control payments and the payments experience for their users within the Facebook ecosystem,”.
- Facebook is playing a long game where the payment connections it building to consumers will evolve along with contextual commerce and digital currency….